008700.KS
Anam Electronics Co Ltd
Price:  
1,463.00 
KRW
Volume:  
244,750.00
Korea, Republic of | Household Durables
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008700.KS WACC - Weighted Average Cost of Capital

The WACC of Anam Electronics Co Ltd (008700.KS) is 7.0%.

The Cost of Equity of Anam Electronics Co Ltd (008700.KS) is 7.85%.
The Cost of Debt of Anam Electronics Co Ltd (008700.KS) is 4.25%.

Range Selected
Cost of equity 6.60% - 9.10% 7.85%
Tax rate 10.40% - 17.20% 13.80%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.0% - 8.1% 7.0%
WACC

008700.KS WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.6 0.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 9.10%
Tax rate 10.40% 17.20%
Debt/Equity ratio 0.25 0.25
Cost of debt 4.00% 4.50%
After-tax WACC 6.0% 8.1%
Selected WACC 7.0%

008700.KS's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 008700.KS:

cost_of_equity (7.85%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.6) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.